1. A company issued 10,000 5-year bonds. Each bond has a par value of $1,000 and has a coupon rate of 4.5%. On the day the bonds were issued, the prevailing market interest rate was 4.5%

a) What is the coupon payment amount that each bondholder will receive every six months?

b) How much cash must the company pay in total coupon payments every six months?

c) On the day they were originally issued, did the bonds sell at par, above par, or below par?

d) How much total cash did the company receive on the day it issued the bonds?

e) How much total cash must the company pay (for the principal) on the day the bonds mature?